Contracts
A Washington buyer submits an offer that is contingent on the appraisal meeting or exceeding the purchase price. The property appraises at $15,000 below the purchase price. The buyer may:
ABe forced to close at the contract price regardless of the appraisal
BExercise the appraisal contingency to renegotiate or cancel the contract✓ Correct
COnly walk away if the seller refuses to lower the price
DRequire the appraiser to revise the appraisal upward
Explanation
An appraisal contingency protects the buyer when the property appraises below the contract price. The buyer can exercise the contingency to renegotiate the purchase price, request the seller make up the difference, or cancel the contract and recover their earnest money.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
State-Specific Concepts
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